Suppose that the marginal propensity to save is ds = 0.20 (in billions of dollars) dy and that consumption is $5.85 billion when disposable income is $0. Find the national consumption function. c(y) 0.20y+5.85

Suppose that the marginal propensity to save is ds = 0.20 (in billions of dollars) dy and that consumption is $5.85 billion when disposable income is $0. Find the national consumption function. c(y) 0.20y+5.85

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the marginal propensity to save is
ds
0.20 (in billions of dollars)
dy
and that consumption is $5.85 billion when disposable income is $0. Find the national consumption function.
C(y) 0.20y+ 5.85
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